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Substitution between immigrants, natives, and skill groups

Author: George J Borjas; Jeff Grogger; Gordon H Hanson; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, ©2011.
Series: Working paper series (National Bureau of Economic Research), no. 17461.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
The wage impact of immigration depends crucially on the elasticity of substitution between similarly skilled immigrants and natives and the elasticity of substitution between high school dropouts and graduates. This paper revisits the estimation of these elasticities. The U.S. data indicate that equally skilled immigrants and natives are perfect substitutes. The value of the second elasticity depends on how one  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: George J Borjas; Jeff Grogger; Gordon H Hanson; National Bureau of Economic Research.
OCLC Number: 755803481
Notes: Title from http://www.nber.org/papers/17461 viewed Oct. 4, 2011.
Description: 1 online resource (22, [2] pages).
Series Title: Working paper series (National Bureau of Economic Research), no. 17461.
Responsibility: George J. Borjas, Jeffrey Grogger, Gordon H. Hanson.

Abstract:

The wage impact of immigration depends crucially on the elasticity of substitution between similarly skilled immigrants and natives and the elasticity of substitution between high school dropouts and graduates. This paper revisits the estimation of these elasticities. The U.S. data indicate that equally skilled immigrants and natives are perfect substitutes. The value of the second elasticity depends on how one controls for changes in demand that have differentially affected high school dropouts and graduates. The groups are imperfect substitutes under standard trend assumptions, but even slight deviations from these assumptions can lead to an outright rejection of the CES framework.

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